Competition, Monopoly, and Aftermarkets / Dennis W. Carlton, Michael Waldman.

Format:

Book

Author/Creator:

Carlton, Dennis W.

Contributor:

National Bureau of Economic Research.

Waldman, Michael.

Series:

Working Paper Series (National Bureau of Economic Research) no. w8086.

NBER working paper series no. w8086

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2001.

Summary:

Consider a durable goods producer that potentially has market power in the aftermarkets associated with its products. An important question is to what extent, if any, should the antitrust laws restrict the firm's behavior in these aftermarkets? In this paper we explore a number of models characterized by either competition or monopoly in the new-unit market, and show that a variety of behaviors that hurt competition in aftermarkets can, in fact, be efficient responses to potential inefficiencies that can arise in aftermarkets. Our results should give courts pause before intervening in aftermarkets.

Notes:

Print version record

January 2001.